The Mint Report for 05 July 2011

Idea Cellular has won a breather. On Tuesday the company was awarded a temporary stay on its Rs250 crore fine. That penalty was imposed by the department of telecommunications for Idea’s six overlapping licenses from its acquisition of Spice. The stay was issued by telecom tribunal TDSAT.

Indian manufacturing may be slowing down, but the country’s services sector is showing robust growth after a brief slump. The HSBC Markit Business Activity Index stood at 56.1 in June. That’s compared to May’s 55, which was a 20-month low. The figures are the latest indication the services industry continues to grow. This is the 26th straight month of expansion. Services account for almost 60% of India’s economy.

Indian markets slipped back into the red on Tuesday, with investors rushing to book profits from a lengthy rally. The Sensex plunged 69.92 to 18744.56 and the Nifty tumbled 18.40 to 5632.10